Business
The Rise in Demand for Bitcoin-Tracking ETFs
Explore the increasing popularity of Bitcoin-tracking ETFs as investors seek exposure to the cryptocurrency market through exchange-traded funds. Learn about the latest trends and implications for financial markets.
The U.S.-listed exchange-traded funds that closely track bitcoin’s (BTC) spot price are experiencing a surge in demand once again.
Inflow of $422.5 Million in a Single Day
On Tuesday, these funds recorded a cumulative net inflow of $422.5 million, marking the highest single-day tally since June 5. The data, tracked by Farside Investors and Coinglass, indicates a seven-day winning streak for these funds.
BlackRock’s IBIT Leads the Inflows
BlackRock’s IBIT dominated the inflows on Tuesday, amassing over $260 million. Following closely behind, FBTC drew $61.1 million. Other funds, except GBTC, DEFI, and BTCW, each pulled in less than $30 million.
Over $1 Billion Inflows in Three Days
Collectively, these funds have attracted over $1 billion in just the last three days, highlighting investors’ confidence in bitcoin’s price prospects.
Bitcoin Price Recovery and Possible Influencing Factors
The price of BTC has surged 23% to $65,800 since its low near $53,500 on July 5, according to CoinDesk data. Alongside the ETF inflows, factors such as the exhaustion of selling pressure from Germany’s Saxony state, improved probability of a pro-crypto U.S. presidential candidate winning the election, and Trump’s decision to appoint BTC-holder and Ohio Republican senator James David Vance as vice president may have contributed to the price recovery.
James David Vance’s Role in Crypto Legislation
Vance, a supporter of BTC and digital assets since 2021, began circulating a draft version of crypto legislation last month. His involvement in advancing crypto legislation while being considered for the VP position under Trump demonstrates the growing political relevance of crypto. The appointment of Vance, a known BTC holder prioritizing crypto-friendly policies, is seen as a positive development for the crypto community.
Crypto Market Catching Up with Wall Street Rally
With the supply overhang from Saxony resolved, the crypto market may be aligning with the sustained rally in technology stocks on Wall Street. Despite reports of creditor reimbursements from Mt. Gox on Tuesday, BTC prices remained resilient, reflecting the overall optimism in the market.